Mozambique: LAM receives its first cargo aircraft
File photo: Lusa
The company Linhas Aéreas de Moçambique (Mozambique Airlines – LAM) owes an estimated at US$230 million (14.7 billion meticais), General Director João Carlos Pó Jorge told journalists at a media breakfast on Tuesday (July 6).
Answering a question on the extent of the flag carrier’s liabilities, Po said: “Yes, LAM’s accounts are in the red. The company carries a debt of US$230 million from the past, corresponding to debts to banks, to domestic suppliers, and, to a lesser extent, to external suppliers.”
Even with this debt, Po said, operating losses began to fall in 2018, and its December 2020 accounts were at “break-even”.
“This is an indication that we are on the right path. We expect that, in 2021, if the pandemic alleviates and we start using what resources we have, we will move into positive territory.”
LAM’s fleet consists of six leased aircraft: two Boeing 737-700s, one Bombardier Q 400 and three Embraer 145s, the latter operated by subsidiary Moçambique Expresso (MEX).
LAM has been standardizing its fleet recently, in December 2018 selling a Boeing 737-500 Classic to Ariana Afghan Airlines for US$2.5 million.
The airline also has two Embraer 190s for sale in a hangar in Nairobi, Kenya, a country chosen because it is certified to maintain this type of aircraft.
Since the aircraft were mothballed in September 2019, LAM has been paying US$40,000 storage per plane per month, totalling US$400,000 to date. It still remains far from finding a buyer, to the extent that the company has even considered selling the aircraft for parts.
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